A document has recently been published on the Securities and Exchange Commission (SEC) website. It outlines a comprehensive plan for integrating XRP into various government payment systems, including tax refunds and social security disbursement.
According to the proposal, XRP implementation could potentially free up approximately $1.5 trillion from US Nostro accounts by replacing the SWIFT system with XRP-based liquidity solutions. Additionally, the document claims that such a transaction might generate transaction fee savings of around $7.5 billion annually.
Central to the proposal is a suggested implementation timeline with an “XRP Government Payment Pilot” phase lasting 6-12 months. This pilot would target IRS tax refunds and social security integration as initial use cases.
The document further outlines both standard 24-month and accelerated 6-12 month implementation plans for broader adoption within the US financial infrastructure. The proposal includes specific recommendations for various government agencies.
It suggests that the SEC classify the token as a payment network and not as a security. It should come with an official clarification and settlement with Ripple. For the Department of Justice (DOJ), it recommends providing what is referred to as legal clearance for XRP-based transactions. It proposes that the Federal Reserve and Office of the Comptroller of the Currency (OCC) mandate direct integration into financial policy.
XRP Regulatory Context and Adoption
This proposal circulates during a period of evolving regulatory clarity for Ripple’s XRP. In a previous ruling, a US court determined that XRP is not considered a security in secondary market transactions.
This decision was generally viewed as a positive development for Ripple, the company behind XRP. Simultaneously, the cryptocurrency has seen an increase in institutional interest. One such interest is Grayscale Investments’ recently submitted application for an XRP ETF.
According to reports, the SEC has acknowledged this application. This confirmation represents a potentially important step toward mainstream financial adoption.
The proposal also discusses potential roles for various cryptocurrencies within a national digital framework. It proposes Solana for high-speed blockchain applications, Cardano for academic credentialing, and smart contracts for government services.
Despite its presence on the SEC website, this document should be understood as a proposal, not an official policy announcement.
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